Elements of the Theory of Cycle of Money without Enforcement Savings

Abstract

The purpose of this paper is to show the negative impact on the economy of having low enforcement savings. Booster savings are those that have a positive effect on an economy as opposed to escape savings. This analysis has used the Q.E. (Quantification of Everything) method and its econometric approach. Also, it uses the E.Q.E. (Econometric Quantification of Everything) method. The results confirm the initial hypothesis that booster savings show the amount of money available in an economy, as they allow money to be reused and better dispersed, resulting in greater consumption and investment. If money is concentrated in companies that substitute smaller domestic companies, then their super profits are impossible to consume and are usually stored in tax havens and international banks, with the result that this amount of money is lost from the economy.